Rate increases secured by insurance-linked securities (ILS) funds and collateralized reinsurance vehicles at the mid-year reinsurance renewals are likely to be higher than had been expected when the negotiations began, sources have told Artemis.
Typically, we don’t get any clear signs of price trajectory until after July 1st when the reinsurance broker reports are released, so we expect to start seeing some of these either at the end of this week, or beginning of next.
But these don’t always break-out the rates secured by the collateralized reinsurance market or ILS funds, but this year we’re told the same macro-trends that had driven catastrophe bond spread widening have also been driving prices higher for collateralized reinsurance and retrocession products.
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